A report in the Marshall Islands says unemployment has hit 40 percent.
The 2005 Economic and Social Report says youth unemployment is about double that rate.
Our correspondent says while the job market in the Marshall Islands is getting worse, as unemployment in the late 1980's was still down at 12 percent.
Meanwhile, government workers get better pays, with salaries rising by 50 percent since 1997.
In the same period, pays in the private sector have fallen by nearly 20 percent.